Hyderabad

Revanth Reddy Accuses KTR of Delaying Rs 13,600-Crore Hyderabad Metro Loan

By Editorial·15 June 2026·1 min read

A photorealistic wide shot of the Hyderabad Metro elevated rail line cutting through the city's modern skyline under a d...

On Monday, 15 June 2026, Telangana Chief Minister A. Revanth Reddy accused Bharat Rashtra Samithi (BRS) working president K.T. Rama Rao of conspiring to delay the Hyderabad Metro Phase II expansion. Speaking at a press conference at the Secretariat in Hyderabad, Reddy claimed that political motives are blocking a crucial Rs 13,600-crore loan meant for the project.

The Chief Minister alleged that Union Minister G. Kishan Reddy was acting at the behest of K.T. Rama Rao to halt the disbursement of the loan. According to Reddy, all formalities to secure the Rs 13,600-crore loan from a Japanese organization through the Indian Railway Finance Corporation (IRFC) had already been completed.

Reddy stated that the Japanese organization had already deposited the loan amount into the IRFC's account. The loan was approved at a 4 percent interest rate, which would help the state government save Rs 150 crore annually by reducing the interest rate from the current 8.25 percent.

The Telangana government took over the Hyderabad Metro Rail from L&T starting June 1. Currently, L&T is suffering Rs 450 crore in losses. Reddy explained that securing this low-interest loan would help transition the Hyderabad Metro from a loss-making unit into a profitable one.

However, Reddy accused Union Minister Kishan Reddy of creating hurdles and prevailing upon the central government to hold the disbursement. He noted that Monday was the final deadline for the IRFC to release the funds, challenging the Union Minister to facilitate the release before the 5 p.m. deadline.

Reddy added that the state had previously requested a No Objection Certificate (NOC) from the Union government to execute the expansion on its own. He recalled telling Union Minister Khattar that if the central government could not provide 50 percent funding, they should at least issue an NOC. He warned that if the IRFC loan is blocked, the state will have to seek alternative funding options with higher interest rates.